Denmark’s economy is showing resilience despite global economic uncertainties, particularly stemming from international trade tensions. While the shadow of potential tariffs and global unrest looms, the Danish labor market continues to thrive, driving economic growth.

Consumer confidence, however, has plummeted to its lowest level since the pandemic. Despite overflowing bank accounts and wages outpacing inflation, Danes are hesitant to spend, possibly due to fears of future price hikes and a saturation of household goods purchases.

The housing market remains robust, with prices continuing to rise, particularly in major cities like Copenhagen. This is fueled by a strong labor market and increasing purchasing power, although it presents challenges for young people trying to enter the market. The summer house market, another indicator of economic health, is also experiencing record-high prices.

Denmark’s economic growth reached 3.7 percent in 2024, one of the highest rates in the millennium. While fluctuations in the pharmaceutical industry can skew figures, the underlying strength of the economy is undeniable, supported by a thriving labor market.

Public finances are healthy, with the government projecting a surplus of DKK 46 billion this year. This strong financial position allows Denmark to manage its national debt effectively, positioning the country well to navigate global economic challenges.